Tags: Tesla | UBS | electric | car

Tesla Falls After UBS Says Sell as Growth Will 'Disappoint'

Tuesday, 21 Jul 2015 01:54 PM

Tesla Motors Inc. declined after UBS AG cut its rating on the stock to sell, citing prospects for growth in the electric-car maker’s auto and battery-storage businesses.

The shares slid 4.7 percent to $269.10 at 12:59 p.m. in New York after dropping as much as 5.3 percent, the most intraday in two weeks. The downgrade was at least the third this month for Tesla, after reductions by Deutsche Bank and Pacific Crest Securities.

UBS analyst Colin Langan said in a note to investors Tuesday that “we expect both storage and auto volume growth to disappoint” as Tesla faces new competitors, rising costs and funding needs. UBS, which had rated the Palo Alto, California- based company’s shares as neutral, also lowered its 12-month price target to $210 from $220.

Tesla gained 27 percent this year through Monday, as the Standard & Poor’s 500 Index rose 3.4 percent. According to data compiled by Bloomberg, 10 analysts rate Tesla as buy, eight as hold and five as sell.

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Tesla Motors Inc. declined after UBS AG cut its rating on the stock to sell, citing prospects for growth in the electric-car maker's auto and battery-storage businesses.
Tesla, UBS, electric, car
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2015-54-21
Tuesday, 21 Jul 2015 01:54 PM
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